5 Best Whole Life Insurance Plans in Singapore (2020) The PolicyPal Blog

Life insurance is something you purchase to provide a safety net for yourself and your family. This “safety net” comes in the form of a payout to your family in the event of your death, if you suffer total and permanent disability (TPD), or terminal illness.

Life insurance can be further broken down into two types – “term” and “whole”. We’ve covered term life insurance in another article.

In this article, we’ll be taking a dive into what whole life insurance is, and what are the best plans currently out there for you.

5 best whole life insurance plans in Singapore (2020)

We’ve rounded up some of the best whole life insurance plans in Singapore:

Product	Coverage	Highlights
Manulife LifeReady Plus	Death, terminal illness and TPD. Policy term till age 99	Low starting sum assured of $25,000
AIA Guaranteed Protect Plus (II)	Death and total and permanent disability. Will cease at age 100 and age 70 respectively	Boost coverage with AIA Vitality rewards
AXA Life Treasure	Death, terminal illness and TPD. Policy term till age 99	100% disability benefit if you are partially disabled
Aviva MyWholeLifePlan III	Lifetime cover for death and terminal illness	Single premium available; retirement payouts
PRUActive Life Plan	Lifetime cover for death, terminal illness and TPD	Short premium payment term starting from 5 years

Looking for whole life insurance quotes? Head over to our product page to learn more.

Manulife LifeReady Plus

Manulife LifeReady Plus offers up a limited pay premium term structure which allows you to pay for your plan for a set number of years but still be covered until the age of 99. low starting sum assured of $25,000, which can be a good starting point for young policyholders.

Benefits: With the health advantage benefit, the policyholder can enjoy premium discounts for the first two policy years and continue if they meet Manulife’s health targets. There is also a retrenchment benefit to protect your income in the scenario of job loss.

Coverage: Death, terminal illness, TPD till age 99.

Riders: Critical illness

AIA Guaranteed Protect Plus (II)

AIA Guaranteed Protect Plus (II) is a plan for those who love flexibility in the form of increasing and decreasing coverage during various key milestones in life. All AIA policyholders will be able to redeem AIA Vitality rewards which will give you additional coverage of up to 25% on top of your 5x boosted coverage.

Benefits: Option to boost your coverage for death and total and permanent disability up to the age of 65 or 75 along with a lifetime base cover with boosted coverage of up to 500% of sum assured.

Coverage: Death, terminal illness, TPD

Riders: Critical illness and premium waivers

AXA Life Treasure

AXA Life Treasure limited pay premium scheme provides flexible terms that goes up to 30 years, which can help spread out the payment period and make premium payment more affordable. The plan also has a payout of up to 7x of the sum assured in the event of death, TPD, Terminal Illness and critical illness.

Benefits: Guaranteed insurability and the ability to increase coverage during major life events. It also comes with 100% disability benefit paid out if 2 out of 6 Activities of Daily Living are disrupted.

Coverage: Death, terminal illness, TPD

Riders: Multiplier Benefit, Accidental Death Benefit, Critical Illness Benefit, Early Critical Illness Benefit, Premium Waiver

Aviva MyWholeLifePlan III

With premium terms that begin from five years to even offering single premium payment, Aviva MyWholeLifePlan III is for you if short premium terms are what you’re looking for. This plan also allows you to have a regular monthly payout once you hit 65 years old and the cash value bonus will still be in place during your retirement years.

Benefit: The plan provides the option to have your payouts paid monthly up till the age of 99 to supplement your retirement needs.

Coverage: Death, terminal illness

Riders: TPD Advance Cover III, CI Advance Cover III, Early CI Advance Cover III MultiPay CI Cover II, CI premium waiver, payer CI premium waiver and payer premium waiver benefit

PRUActive Life Plan

A key feature of the PRUActive Life Plan is its flexible premium term and customisable coverage multiplier against Death, TPD and Critical Illnesses, while having cash value. Similar to Aviva MyWholeLife, this plan offers premium terms starting from five years.

Benefits: Flexibility in choosing your own Multiplier Benefit (up to 5x) and Multiplier Benefit Expiry Age (65, 70, 75 or 80 years old).

Coverage: Lifetime cover for Death, terminal illness and TPD

Riders: Early Crisis Care

PolicyPal promotion: 10% commission rebate*

Compare, buy and manage your Life Insurance on PolicyPal — and earn cash rebate while you’re at it!

*Your rebate will be credited via PayNow, Term and Conditions apply.

What is whole life insurance?

As its name indicates, whole life insurance is a policy which will last you through your lifetime without requiring you to pay premiums all the way through. For example, you can choose to pay premiums for 25 years, but still enjoy the benefits of the policy for the rest of your life.

Another feature of whole life insurance is the surrender value or cash value that your plan has accumulated over the years. What this means is that you will have the option to cash out the value of your life insurance policy by surrendering it at a later stage in life.

Now, the above two points play a huge part in explaining why whole life insurance is priced so much higher than term life insurance.

Term life insurance covers you only for a specific length of time (20, 25 years, and so on) and it has no cash value. Once the term is up, the policy is over — unless you pass away, suffer TPD, or become terminally ill, there will be no payout.

Want a more detailed breakdown? Here’s a term life vs whole life insurance comparison.

Why would you consider buying a whole life insurance plan?

Although whole life insurance is more expensive than term life insurance, there are plenty of people who buy it for the following reasons.

Cash value

With whole life insurance, you have the choice to unlock cash value. Only whole life (not term) insurance gives you an opportunity to terminate your life insurance contract in exchange for its cash value. You can only do this if you’ve not made any claims before.

Lifelong coverage

A whole life insurance plan protects the policyholder for their whole life (99 or 100 years old). In contrast, term life insurance coverage ends once the term ends (though there are some term insurance plans that stretch up to 99 years).

Premiums will not increase if diagnosed with a serious illness

Whole life insurance premiums will remain the same after a critical illness payout (if this rider is part of the whole life plan). Conversely, with a term life insurance plan, you may need to undergo medical underwriting to renew your life insurance plan, which may increase your premiums.

Limited payment term

You can pay for a limited number of years (e.g. 10 years, 20 years) for a lifetime of coverage. This allows you to shorten your financial commitment to the plan.

Arrange a free teleconsulting service with PolicyPal

Because life insurance isn’t one-size-fits-all, we strongly recommend speaking to us before you commit to a life insurance plan of any sort. Our professional advisers can assess your budget and needs holistically, and give you personalised recommendations.

PolicyPal offers all our members a free financial portfolio review. This review will help you better understand how to create a suitable financial plan for you and your family. We will analyse life insurance products from over 20 insurers and present you solutions that are tailor-made to address your concerns.

Our advisers will be more than happy to help you understand any of these insurance policies:

Health Insurance
Critical Illness Insurance
Endowment/Savings Insurance
Personal Accident Insurance
Term/Whole Life Insurance

To get in touch, you can WhatsApp us at 87500688 and let us know your preferred date and time for the appointment. Alternatively, leave your details below and we will contact you to help you set up an appointment.

Submit your interest now!

If you would like to know more about a specific life insurance product you can also let us know your preference. This is so that we can be better prepared during the appointment to present you with a comparison table if needed.